POLICY OPTIONS
There are a number of policy options that need to be considered when devel-
oping employee relations strategy. The following four options have been
described by Guest (1995):
- The new realism – a high emphasis on HRM and industrial relations.The aim
is to integrate HRM and industrial relations. This is the policy of such
organizations as Rover, Nissan and Toshiba. A review of new collabo-
rative arrangements in the shape of single-table bargaining (IRS, 1993)
found that they were almost always the result of employer initiatives,
but that both employers and unions seem satisfied with them. They have
facilitated greater flexibility, more multiskilling, the removal of demarca-
tions and improvements in quality. They can also extend consultation
processes and accelerate moves towards single status. - Traditional collectivism – priority to industrial relations without HRM.This
involves retaining the traditional pluralist industrial relations arrange-
ments within an eventually unchanged industrial relations system.
Management may take the view in these circumstances that it is easier to
continue to operate with a union, since it provides a useful, well-estab-
lished channel for communication and for the handling of grievance,
discipline and safety issues. - Individualized HRM – high priority to HRM with no industrial relations.
According to Guest, this approach is not very common, except in North
American-owned firms. It is, he believes, ‘essentially piecemeal and
opportunistic’. - The black hole – no industrial relations.This option is becoming more
prevalent in organizations in which HRM is not a policy priority for
managements but where they do not see that there is a compelling reason
to operate within a traditional industrial relations system. When such
organizations are facing a decision on whether or not to recognize a
union, they are increasingly deciding not to do so.
FORMULATING EMPLOYEE RELATIONS STRATEGIES
Like other business and HR strategies, those concerned with employee rela-
tions can, in Mintzberg’s (1987) words, ‘emerge in response to an evolving
situation’. But it is still useful to spend time deliberately formulating
strategies, and the aim should be to create a shared agenda that will commu-
nicate a common perspective on what needs to be done. This can be
expressed in writing, but it can also be clarified through involvement and
Employee relations strategy l 197